All Forum Posts by: Dustin Faeth

Hi David...I don't see my decision to leave my previous employer to pursue real estate investing full time before completing my first rehab deal as a red flag at all. There are successful individuals completing real estate deals without piles of their own money every day...I have been working toward this goal to make this my full time occupation for awhile now, and was traveling too much with my other job to be able to put the time into real estate that I wanted, and was finally at a place where I was comfortable with making the leap, so I did.

I'm well aware that a rehab is not a quick cash deal, which is why I am actively marketing (bandit signs, direct mail, networking, etc) to wholesale and other means of making cash. I definitely have some money to put toward a deal to add my "skin in the game" if needed, but have been putting that money toward marketing and building my business at the moment. In my mind, it will only take me one good, successful rehab project to earn some solid capital and credibility, and enable me to attract private lenders and pursue more rehabs at that point.

I do have some local mentors I currently work with, as well as the Fortune Builders program I am apart of, and linked to a nationwide network of real estate investors and resources.

I have one private lender that is currently backing me for a deal, but her terms are a little higher than I'd like, but just wanted to reach out and network with others on this site to see what other options I might have, and any others that might be interested in funding a deal with me and making a nice return while I do all the heavy lifting on managing the project.

And thanks for the advice on the SDIRA...definitely a good strategy to find some lenders with SDIRA's willing to finance a project of mine and build their retirement account.

Thanks Will...it can be a little difficult gaining any credibility without much of a track record thus far, but my ambition and commitment level is strong and I've been active in learning all I can and pushing myself outside my comfort zone to get as much experience as I can, and prepared to take on a rehab project. I do also own a rental property already and have been meeting with sellers and working on some wholesale deals also, so not solely focused on just rehabs, but once I get funding in place, I want to successfully complete a rehab.

I do have some money I could put toward the deal if needed, but probably only about $5k or so right now unfortunately. I have moved my 401k money to a self-directed IRA with Equity Trust Co. recently and would like to invest that toward real estate also, but I don't believe I can invest that in my own project.

I'm open to working together in a partnership arrangement...I'd like to hear your thoughts on this and how we'd structure everything, but definitely open to working together in any capacity where we both win.

Hi Will, you are correct, I am in the process of working on my first rehab deal. I know this obviously makes me a greater risk and gives a certain level of uncertainty to a lender, but as I mentioned, I have surrounded myself with other investors who have completed many rehabs successfully and are available as a resource for knowledge and experience through this process with me. I'm confident that as long as I buy right, the numbers all make sense, and I follow the system and plan I've been given by proven investors in the industry, then myself, and my lender will be successful in the deal. And I'm also no stranger to the rehab process itself, as I have worked with contractors doing the actual work on projects in the past so I understand how to manage a project.

If I have personal retirement funds in a self directed IRA right now, what options do I have for investing this in real estate? And can I use this money to invest in real estate for my own business (to fund rehab costs for my own project, deposit money on a property, etc.)?

Hi J, and thanks for the welcome into the BiggerPockets group. Here is some additional information on the types of deals I am looking to rehab and flip. Homes that appeal to first time homebuyers and families: 3+ bedrooms, 1.5+ bathrooms in a decent neighborhood and school district.

I follow a standard formula to evaluate the deals before I decide if it is worth putting an offer down or not: ARV x .70 – repair cost = MAO (maximum allowable offer), and I make sure I NEVER offer above that, and always try to estimate conservatively to ensure my investment is a success. For example, I just put an offer on an REO property off the MLS yesterday with a conservative ARV of $115k and repairs of $21k, giving me a MAO of $59,500 and my initial offer is at $50k…project shouldn't take long to complete as it is mostly cosmetic repairs, and similar properties in the area have sold within 45 days in the past 5 months. I should hear something back on my offer today.

I already have a private lender lined up for this deal, but I'm am looking to network with more potential lenders to have the ability to put more offers on more properties as it is a win-win situation for the lender and myself. I am a firm believer that you make your money on a real estate investment when you purchase the property, which is why I am doing a lot of my own marketing to negotiate directly with sellers and help them through a sometimes challenging situation they may be in with their home, and also come away with a great deal and successful investment with the property on my end…and there is always the occasional good deal you can snag on the MLS as well.

I have been actively studying real estate investing and attending meetings for the past couple years, and I recently left my job of 6+ years as an Account Manager/Outside Sales with one of the largest industrial gas/welding equipment companies in the U.S., to pursue real estate investing full time. What I lack in experience, I have certainly compensated for by surrounding myself with knowledgeable people and resources that are already successful in this business, and I’m part of a nationwide network of successful real estate investors kicking butt in markets everywhere using the same program and systems I am following. I have also recently done some work with contractors on a couple rehab projects so I am experienced in managing contractors and following a timeline and budget to get a project done on time and within budget.
Any additional questions, just feel free to ask. Thanks

I'm a full time real estate investor in Columbus, OH looking for a private lender interested in funding a rehab/flip deal up to 70% of the after repair value and will earn up to 15% return on their investment...your investment will be secured by title insurance policy, homeowners insurance policy, first mortgage position, and a personally signed promissory note on the property. Let me know if you're interested in letting your money make more money for you! Contact me to discuss further...thanks